Public Service Enterprise Group Incorporated (PEG) Stock Analysis
PEG combines a 6%–8% EPS growth utility platform with insulated nuclear upside, offering an attractive probability-weighted 11.01% annualized five-year return despite near-term rate and regulatory pressure.
Overview
Public Service Enterprise Group is a New Jersey-focused energy infrastructure company combining the exclusive PSE&G regulated utility with PSEG Power’s 3,758 MW carbon-free nuclear fleet. PSE&G serves approximately 2.4 million electric and 1.9 million gas customers and earns regulated returns on transmission and distribution investment, while nuclear generation sells into PJM markets and capacity auctions. **The core investment case is visible utility growth:** PSEG plans $24 billion–$28 billion of capital spending from 2026 through 2030, with $22.5 billion–$25.5 billion allocated to regulated assets and a projected 6.0%–7.5% rate-base CAGR. Management reaffirmed 2026 Operating EPS guidance of $4.28–$4.40, with a $4.34 midpoint approximately 7% above 2025’s $4.05, and maintained a 6%–8% EPS CAGR target through 2030. Q2 2026 revenue fell 8.9% to $2.554 billion and missed consensus by 6.6%, but non-GAAP Operating EPS rose 11.7% to $0.86 and beat the $0.80–$0.83 range. Valuation is above peers at 16.60x forward P/E and 3.54% forward yield, reflecting nuclear optionality. The key near-term catalysts are the year-end 2026 rate case, hyperscale nuclear contracts, and stabilization in Treasury yields.